ANNUAL REPORT 2018 AVCAL.COM.AU CONTENTS INTRODUCTION 03 AVCAL MEMBERS 04 AVCAL BOARD OF DIRECTORS 05 CHAIRMAN & DEPUTY CHAIRMAN’S MESSAGE 07 CHIEF EXECUTIVE’S MESSAGE 11 AVCAL AT A GLANCE 13 POLICY & ADVOCACY 14 AVCAL MEDIA COVERAGE 20 RESEARCH PUBLICATIONS 21 DIVERSITY & INCLUSION 22 INDUSTRY AWARDS 23 AVCAL IN THE COMMUNITY 24 INDUSTRY EVENTS 28 STAKEHOLDER ENGAGEMENT 32 CODE OF CONDUCT 34 COMMITTEES & WORKING GROUPS 35 BUILDING CONCISE FINANCIAL REPORT 37 BETTER BUSINESSES OUR STRATEGIC PILLARS POLICY & ADVOCACY CONNECTED COMMUNITY INVESTOR ENGAGEMENT THE AUSTRALIAN PRIVATE EQUITY INTRODUCTION AVCAL’s members comprise most of the active private AND VENTURE CAPITAL ASSOCIATION equity and venture capital firms in Australia, as well LIMITED (AVCAL) IS A NATIONAL as the institutional investors into the industry. These ASSOCIATION WHICH REPRESENTS THE firms provide capital for early stage companies, later stage expansion capital, and capital for management PRIVATE EQUITY AND VENTURE CAPITAL buyouts of established companies. INVESTMENT INDUSTRY. AVCAL MEMBERS BUILD BETTER BUSINESSES The investment model used by the private equity and venture capital industry supports the building of stronger businesses that can deliver sustainable increases in enterprise value over the long-term. AVCAL’S CORE OBJECTIVE To ensure the business community and other key stakeholders understand the benefits of the private capital model of business ownership, and the role it can play in contributing to investment and employment growth across the Australian economy. / 03 AVCAL MEMBERS Current members as at September 2018 AVCAL BOARD IFM Investors InterFinancial Corporate Finance Limited Intermediate Capital Managers Australia OF DIRECTORS Blackbird Ventures Invest Europe Blue Ridge Partners Investec Australia Blue Sky Private Limited THE AVCAL BOARD IS MADE UP OF 15 CAMERON BLANKS, NATHAN CAHILL, Equity Ltd Ipreo Chairman, AVCAL Partner, Minter Ellison Blue Sky Venture Capital iQX Investment INDUSTRY PARTICIPANTS FROM PRIVATE Managing Director, BMY Group Pty Ltd Services Pty Ltd EQUITY, VENTURE CAPITAL, INVESTOR Pacific Equity Partners RUSSELL SINCLAIR, Boab Capital Group Johnson Winter Executive Director, & Slattery AND CORPORATE SECTORS. Brandon Capital Partners ANDREW MAJOR, Head of Loan Syndications & Jones Day Bridgeport Capital Elev8 Venture Deputy Chairman, AVCAL Acquisition Finance, Westpac Kain Lawyers Pty Limited BVCA Management, I.L.P. General Manager – Unlisted Kestrel Capital Pty Ltd Cambridge Associates Ellerston Ventures Assets, HESTA STEPHEN THOMPSON, Campbell Lutyens Emil Ford Lawyers King & Wood Mallesons Managing Director, Pacific Equity Partners Carthona Capital EMPEA KKR Australia ANNE-MARIE BIRKILL, Brandon Capital Partners Pty Limited Pacific Road Capital Cbus Estrala Capital & KPMG Management Pty Limited Managing Partner, Challenger Investment Advisory Pty Ltd TIM MARTIN, L Catterton Partners for Growth One Ventures Partners Evolve Private Capital Private Equity Investment Pty Ltd L.E.K. Consulting Partners Group 3 Oceans Capital CHAMP Private Equity BRYAN ZEKULICH, Professional EY LGT Capital Partners Ltd Partners Group ABVCAP Chatsworth Associates Company Secretary & Pty Ltd First Guardian Capital Liverpool Partners Paspalis Innovation Accretion Investment Investment Fund Treasurer, AVCAL Citco Fund Services Pty Ltd Livingbridge Aus Pty Ltd Management Pty Ltd Phillip Asset Private Equity Area Leader, EY (Australia) Pty Ltd Future Asset Luminis Partners Acer Capital Pty Ltd Management Management Limited Citigroup Australia M.H. Carnegie & Co. Adamantem Capital Pty Limited International Limited Preqin CHESTER MOYNIHAN, Addisons Future Fund Macquarie Group PwC StepStone Clayton Utz Services Australia Founding Partner, ADVANCY Galvin Group QIC Limited SunSuper Clean Energy Finance Mayne Wetherell Allegro Funds Advent Partners Corporation Giant Leap Fund Quadrant Private Equity Talbot Sayer Lawyers McGrathNicol Alium Capital Coast2Coast Capital Gilbert + Tobin Pty Limited TDVC Pty Ltd CHRISTOPHER COATES, Mercury Capital Allegro Funds Coca-Cola Amatil GLG Qutbluebox Pty Ltd Telstra Ventures Pty Ltd Metrics Credit Partners Investment Director, Allen & Overy Commonwealth Bank Goldman Sachs Real Asset Management Tempus Partners Quadrant Private Equity of Australia Australia Pty Ltd Miles Advisory Partners Pty Ltd Allens Pty Limited The Department for Commonwealth Grant Thornton Record Point Industry and Skills Allier Capital Minter Ellison Lawyers FIONA LOCK, Superannuation Australia Limited Reinventure Group The Riverside Company Anacacia Capital Corporation Mizuho Bank Limited Pty Ltd Managing Director, GreenMount Australia Thomson Geer Anchorage Capital Continuity Capital Pty Ltd MLC Investment REMONDIS Australia CHAMP Private Equity Partners Pty Ltd Thomson Reuters Partners Pty Limited Greenstone Partners Management - MLC Risk Capital Advisors ANU Connect Corrs Chambers Pty Limited Private Equity Top Tier Capital FRANK HECKES, Ventures Pty Ltd ROC Partners Westgarth Greenwich Capital Moelis Australia Torrens Capital Partner, Archer Capital ANZ Rothschild Australia Credit Agricole CIB Partners Monash University Limited Trident Debt Aon Risk Solutions Australia Limited Capital Advisors Greenwoods & Herbert MVision Private Equity Royal Bank of Canada GARETH WOODBRIDGE, Archer Capital Credit Suisse Smith Freehills Advisers Ltd Trimantium Capital Principal, KKR Australia Management (Australia) Russell Reynolds Arnold Bloch Leibler Hamilton Lane National Australia Bank Associates Tyche Asset Pty Ltd Management Pty Ltd ASF Capital Pty Ltd Hampton Capital Natixis Australia Pty Ltd S&P Global Market MELISSA WIDNER, Crescent Capital UBS Investment Bank Asia Principal Capital Partners Harbert Management Navis Capital Partners Intelligence General Partner, NAB Ventures Atlas Advisors Australia Corporation New Zealand Trade SAP Australia Pty Ltd Vantage Asset CSIRO Management Pty Limited Austrade HarbourVest Partners & Enterprise Scale Investors Ltd. Deakin University (Asia) Limited Wattle Hill Capital MICHAEL LUKIN, Australian Executor Next Capital Pty Limited Sino Venture Deloitte Corporate Herbert Smith Freehills Western Investments Managing Director, Trustees Limited Finance Nikko Asset Management, I.L.P. HESTA Management Australia Venture Capital Fund ROC Partners Australian Stock Department of Economic Social Ventures Australia Pty Ltd Exchange Ltd Development, Jobs, HLB Mann Judd Norton Rose Southern Cross Venture Corporate (NSW) Pty Ltd Fulbright Australia Westpac Banking AustralianSuper Transport and Resources Partners Pty Ltd Corporation Hogan Lovells NZVCA Australim Ventures Department of Industry, Southmore Capital Wilshire Australia Pty Ltd Innovation and Science Holding Redlich Odyssey Private Equity Bain Capital Asia, LLC St Baker Energy Workplace Giving Besen P/L Deutsche Bank AG Hostplus One Investment Group Innovation Fund Australia Bioscience DLA Piper Houlihan Lokey OneVentures Pty Ltd Stafford Capital Partners Yamaha Motor Managers Pty Ltd Duff & Phelps IAG Firemark Ventures OPTrust Standish Management Ventures & Laboratory 04 / / 05 CHAIRMAN & DEPUTY CHAIRMAN’S MESSAGE Significant time has been spent ensuring we look ahead to position AVCAL to best serve the industry for the next decade and beyond. CHAIRMAN & DEPUTY CHAIRMAN’S MESSAGE BUILDING FOR THE FUTURE CHANGE AND EVOLUTION TODAY 2018 has once again been a busy year for AVCAL At both a global and domestic level, our industry and the Board. It’s been a year focussed on defining is evolving. The traditional definitions between our future, and the organisation’s role within it. private equity, venture capital, and investors, have changed. It’s commonplace now to view the We have spent significant time ensuring we look industry as being about private capital investment, ahead to position AVCAL so we can best serve the featuring new business models, funding sources industry for the next decade and beyond. A major and differentiated strategies within the asset class focus for us at a Board level has been to work with emerging. We recognise the need to become more other members and the AVCAL team to review and accessible to our members and more visible to the realign our organisational strategy – making sure wider business sector and community. we are fit for a rapidly changing and dynamic future. The diversity of the private capital ecosystem means This year also marked an important milestone in our individual members seek different experiences. the context of the industry’s annual conference, Understanding their specific goals, their preferences celebrating 25 years of bringing together the people around engagement and participation, and their needs who make up our professional investment community from membership, enables us to continue improving – the fund managers, the investors and the advisors. our member value proposition, through research, We took the opportunity as part of this year’s insights, advocacy and relationships. Our realigned conference to recognise not only the recent successes strategy recognises the different objectives and of our industry, but also to look back at some of the drivers of value for our members, while also delivering major achievements in private capital investing over a unified voice on behalf of us all to deliver effective the last 25 years. change. We have released significant new research providing AVCAL’s strategy is based on four key drivers that greater insight into our industry, set benchmarks to support our goal to champion